USD/JPY Forex Signal - 10 April 2018

Yesterday’s signals produced a long trade entry just a few hours ago, following the bullish engulfing candlestick rejecting the support level identified at 106.68. It may be wise to take partial profits as the London session begins if the Yen seems to start strengthening.

Today’s USD/JPY Signals

Risk 0.75%.

Trades must be taken between 8am New York time and 5pm Tokyo time, over the next 24-hour period.

Short Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 108.05.

  • Put the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Long Trades

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 106.68, 106.44, or 106.13.

  • Put the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/JPY Analysis

I wrote yesterday that it now looked as if the price would rise to challenge 107.50 and possibly beyond, so I again took a bullish bias. The price actually fell, but the nearest key support has held firmly. There is no change to the technical picture so there is no reason not to have anything other than a bearish bias. The Japanese Yen is currently relatively weak, so this pair is probably going to gain every time the U.S. Dollar strengthens. I remain bullish above 106.68 but bulls will also want to see the psychological level at107.50 broken over this week to remain confident.

USDJPY

There is nothing due today concerning the JPY. Regarding the USD, there will be a release of PPI data at 1:30pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.